Logistics group Christian Salvesen - which has a string of depots across the West Midlands - said its recovery programme was on track but warned markets remained "fiercely competitive".

The group, which is battling to recover from a range of setbacks, said it had made good progress in stabilising the business and that its pipeline of new work was better than ever.

Last autumn the company parted company with chief executive Edward Roderick.

Yesterday it posted pre-tax profits of £17 million for the year to March 31, virtually unchanged on last time and in line with analysts' forecasts.

Earnings per share increased 86 per cent from 1.36p to 2.53p.

Exceptional items more than halved to £3.4 million "relating mainly to the closure of a site in the Netherlands, settling a dispute with a former customer and the replacement of our chief executive".

Total turnover decreased five per cent to £806 million. Underlying sales fell four per cent, reflecting a six per decline in the UK and two per cent in mainland Europe.

Strong cash generation enabled the business to cut net debt by a further £13 million to £96 million.

The Northampton-based group, which employs more than 15,000 people and operates in eight European countries, has been hit by factors such as contract losses and poor growing conditions at its UK vegetable business.

The company has two industrial depots in Birmingham at Hams Hall and Gravelly Park, and further depots in Daventry, Coventry and Rowley Regis.

It also has temperature controlled warehousing in Bedworth and Nuneaton as well as support service centres in Hinckley and Lutterworth, in Leicestershire.

A spokesman said a turnaround drive has focused on winning more customers and improving efficiency.

Salvesen said its strategy of focusing on sales growth had started "encouragingly", with contract wins up 40 per cent in the past year and losses 20 per cent lower.

Contracts won last year had an annual value of around £100 million.

It expected to feel the full benefit of these wins in the current financial year.

The company, which last month appointed former Salvesen executive Stewart Oades as its new chief executive, said it could now look to the future with more confidence because it had a stronger management team in place.